Focusing on Micro LED, AUO actively strengthens its supply chain relationship with Ficai

In order to expand the competitiveness of micro-light-emitting diodes (Micro LED), a new generation panel technology, panel manufacturer AU Optronics Chairman Peng Shuanglang said yesterday (21st) that it would actively integrate its supply chain relationship with upstream LED factory Fucai.

Because Li Bingjie, chairman of Fucai, has publicly announced at the corporate briefing that he will retire this year, there are rumors in the market that Peng Shuanglang will take over as chairman, and may even integrate Fucai into AUO. Peng Shuanglang said at the 2023 Smart AU Expo on the 21st that since Li Bingjie will not participate in this year's Fucai director election, he currently serves as Fucai's vice chairman and will convene a board meeting.

Peng Shuanglang is currently the chairman of AUO and is responsible for the group's strategic planning and integration. He handed over the CEO's job to General Manager Ke Furen. Since AUO invested in Fucai and targeted the micro-light emitting diode (Micro LED) market, the relationship between the two companies has attracted much attention.

Peng Shuanglang explained that AUO invested in micro-light-emitting diodes in 2012 and is now in commercial production mode. Micro-light-emitting diodes attaches great importance to the close integration of upstream and downstream. AUO’s shareholding in Fucai has increased from 5.4% to 17.5%, making it the largest shareholder, far exceeding the 2% shareholding of the second largest shareholder.

He explained that because he saw the importance of upstream materials for micro-light-emitting diodes, he invested in Fucai and would definitely do his best to make the group a leader in the micro-light-emitting diode industry. He also hoped that Fucai could make profits from micro-light-emitting diode products.

In addition, AUO plans to set up a factory in North America. He pointed out that the location will be decided this year. It will mainly produce automotive panels. Since it is a back-end module, the investment amount is not large. The Vietnam plant (expected to be mass-produced in the first quarter of next year) is also a back-end module and the investment amount is not large.

Mentioning the establishment of a factory in the United States, AUO plans to invest in automotive panel modules. Regarding the regional division of labor caused by the confrontation between the United States and China, the supply chain has changed from a long chain to a short chain. Peng Shuanglang believes that as long as the United States and China are in conflict, such a situation is unavoidable, especially in the automotive panel market. Since the panels integrated into automotive panels will become larger in the future, transportation costs will be too high if shipped from Asia to Europe and the United States. Therefore, customers require local delivery, and the location of the factory may be close to downstream customers or have convenient transportation. (Source: United News Network)